Baguio dads to bid members: Bare Asin power plants’ status

BAGUIO CITY – The city council approved a resolution inviting the city’s special bids and awards committee during its regular meeting on Sept. 17 to discuss bidding and privatization of the Asin minihydro power plants and shed light on why the multi-billion project has not yet been implemented despite being awarded to the supposed winning bidder.

The resolution authored by Councilor Peter Fianza stated there is a need to apprise the council on status of the multi-million privatization project and consider recommendations or alternative moves to make the power plants operational and avoid further losses considering deterioration of the power equipment installed in said plants.

Earlier, the local legislative body passed Resolution No. 219, series of 2011 approving the terms of reference and pro-forma contract for the privatization of the Asin minihydro power plants.

The city council approved Resolution No. 037, series of 2017 that confirmed the memorandum of agreement dated 30 January 2015 entered into between the local government and Kaltimex Energy Philippines, Inc. on rehabilitation, upgrading, expansion, operation and management of the power plants.

However, to this date, despite the award and the alleged issuance of the notice to proceed (NTP) to the winning bidder, the contract has not been realized to the prejudice of the local government.

Instead of earning, it has reportedly been subsidizing the preservation and maintenance of the existing facilities since Oct. 12, 2012 when the Benguet Electric Coop. decided to disconnect it from its system.

This, when the Energy Regulatory Commission issued a cease-and-desist order to the local government to temporarily stop the operation of the power plants until such time that it secures a certificate of compliance for the hydros from the regulatory body.

The local government took over the operation of the three Asin minihydro power plants after the expiration of the city’s 25-year agreement with the Aboitiz-owned Hydroelectric Development Corp. in 2006 and the local government was able to earn some P30 million annually from operation of the  plants.

Kaltimex has reportedly requested the local government several time extensions to address issues and concerns that cropped up during their supposed due diligence, but the project never pushed through for more than a year and a half after the contract was confirmed by the local legislative body.

Beneco has signified its intention to partner with the local government, the Tuba municipal government and the indigenous peoples of the host communities if only to make the renewable energy plants operational by providing quality power at cheaper cost. -- Dexter A. See